Former Brocade CEO Greg Reyes Guilty in Stock Options Case

Posted by: Rob Hof on August 7, 2007

A jury just found former Brocade CEO Greg Reyes guilty on all 10 counts in the government’s first stock options backdating case against an executive. It’s a surprisingly clear victory for the feds on an issue that has divided many in the business community. I can’t speak to the specific legalities of the Reyes case or what the jury thought, but I have made no secret that, unlike many in Silicon Valley, I think backdating is a serious issue of ethics. Clearly, a jury agreed, at least in this case. And given that the Reyes case, at least at first, was seen by some as not an especially strong one for the government, the ringing verdict is going to knock a lot of Silicon Valley execs back on their heels. More to come as we hear….

Reader Comments

ej

January 29, 2008 3:00 AM

As far as eithics is concered.
This former CEO of Brocade has none.
and probably does not know the meanning
of the word. He should have been sentenced to 20 years and find 100 mil instead of the meager 15 mil and 21 months.
I dont get it , the ill gotton proffitiers of silicone valley.
Seam to manuver thier way unscaved through the judicial processes and still keep thier ill gotten funds.
so much for justice.

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Bloomberg Businessweek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, and Douglas MacMillan, dig behind the headlines to analyze what’s really happening throughout the world of technology. Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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